Market sentiment turns mixed; yield curve holds firm

By First Capital Research

Investor sentiment appeared mixed yesterday while overall activity showed a mild improvement compared to Monday’s palpable lethargy. 

Moreover, the PDMO announced the details of the bond auction scheduled for the 26th of February 2026, which is set to raise a total of Rs. 140.0bn. Amongst the traded maturities, 15.10.2028 and 15.12.2028 were seen trading at 9.15% and 9.19% respectively. 

Within the 2029 segment, 15.06.2029 traded between 9.39% and 9.40%, 15.09.2029 traded at 9.47% while 15.10.2029 traded within 9.49% to 9.54%. 

Moving ahead, 01.03.2030 and 01.07.2030 both traded at 9.55% while 15.06.2034 traded at 10.75%. Finally, 15.06.2035 traded within the narrow range of 10.84% to 10.85% while 01.07.2037 traded at 10.93%. On the external front, the LKR remained flat against the USD, closing at Rs. 309.38/USD. Overnight liquidity in the banking system expanded to Rs. 297.94bn from Rs. 288.48bn recorded previously.